What is present value of your winnings

Assignment Help Financial Management

Reference no: EM131893346

Assume that you just won $85 million in the Powerball lottery, and hence the lottery will pay you 25 annual payments of $3.4 million each beginning immediately. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 25-year U.S. Treasury bonds) is 3.75 percent, what is the present value of your winnings?

Reference no: EM131893346

Questions Cloud

Calculate the beta by performing regression analysis : Calculate the beta by performing regression analysis with five years of monthly stock returns, using the two market indices in turn

Discuss about the stages of money laundering : Over time, Herman stole $500,000 in cash from his employer. He deposited the cash in small increments into a bank account.

Are women truly better change agents : Are Women Truly Better Change Agents? Although this has been a lingering argument, many analysts believe women can perform better in positions of leadership

How does a firm use the sgr in decision making : How does a company assess its sustainable growth rate (SGR)?How does a firm use the SGR in decision making?

What is present value of your winnings : what is the present value of your winnings?

What is the time estimate of an activity : What is the time estimate of an activity in which the optimistic estimate is 2 days, pessimistic is 12 days, and most likely is 4 days? Show your work.

Calculate the aftertax cost of debt under each of conditions : Calculate the aftertax cost of debt under each of the following conditions.

What changes would you recommend to the calculation : What changes would you recommend to the calculation of the carrying cost i? (Hint: to determine the correct cost of capital, consider 3 scenarios.

Compute the aftertax cost of debt : The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Compute the aftertax cost of debt.

User Account

All Pages